§ 98204 Retirement System Actuarial Valuation

• •Every 4 years, the retirement system must check how much money it has and how much it owes.
• •After checking, they can change how much people pay in, how long they need to work, and how much money they get when they retire.
• •This is to make sure there’s enough money for everyone’s retirement.

Imagine a big piggy bank for all the teachers in a city. Every few years, someone counts how much money is in the piggy bank and how much the teachers will need when they retire.

If there isn’t enough money in the piggy bank, the city might ask teachers to pay a little more into it each month or change how much they get when they retire. This way, the piggy bank won’t run out of money.